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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 11, 2008 <br />1 <br />Action Agenda <br />Item No. <br />SUBJECT: Amendment of Audit Contract <br />DEPARTMENT: Finance <br />PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Contract <br />INFORMATION CONTACT: <br />Gary Humphreys, 245-2453 <br />PURPOSE: To amend the contract with McGladrey and Pullen extending the date for <br />completion of the county audit and compensating for additional services to be performed. <br />BACKGROUND: The Local Government Commission requires the County's audit contract be <br />amended if the audit of the financial statements is not completed in time for the statements to be <br />submitted to the State by the last day of November. This year that date has been extended by <br />the State to December 10th but staff is concerned the statements will not be completed in time to <br />meet the deadline. <br />This year's audit has been delayed for a variety of reasons. <br />• Additional work had to be done by county staff to facilitate preparation of the financial <br />statements of the Triangle Sportsplex. <br />• Staff review of transactions in prior years necessitated corrections that require us to <br />restate beginning balances of this year's financial statements. This requires a higher <br />level of review by the auditors which is outside the scope of the current contract. As <br />such, the auditors are requesting additional compensation not to exceed $5,000 related <br />to a more extensive review associated with a restatement. <br />• The second phase of the audit process started later than last year due to a request by the <br />auditing firm for the county staff to have completed all closing entries before the auditors <br />began their review. <br />The audit and statements are expected to be complete before December 15th but in order to <br />avoid having to re-extend the contract the contract date has been set at December 31st. <br />FINANCIAL IMPACT: Additional audit fees not to exceed $5,000 are requested in order to <br />expand the scope of services to include a more extensive review associated with the <br />restatements. <br />